Among those using credit cards less, 37% are focused on repaying existing debt, while others are wary of high credit card interest rates (33%) or are better able to stay on budget by using credit cards less (31%). In contrast, while 30% of respondents increased their credit card usage, an almost equal 26% reduced it. ![]() Two-fifths of respondents (38%) are using their debit cards more than last year. The uptick in rates has motivated 30% of residents to reduce their credit card spending and debt, while an equal percentage are steering clear of loans altogether. ![]() Thirty-seven percent of regional consumers are slashing non-essential expenditures due to rising interest rates. The current economic climate has resulted in regional consumers making changes to their spending behaviors to combat increased prices and rates. While prices for essentials like groceries may have increased, you can still search for savings by looking for discounts from big box or discount retailers and eating at home.” “Some consumers are already adjusting as they’ve reduced spending on restaurant visits (42%), entertainment (34%), and travel and vacations (34%) from last year. “While continued economic headwinds have impacted many consumers, there are adjustments you can make to help your money stretch further,” said Shari Kruzinski, Executive Vice President, Chief Consumer Banking Officer at WSFS Bank. When looking at spending categories, rising costs for essentials have left consumers’ wallets stretched thinner, with consumers spending more on groceries (60%), transportation (53%), utilities (50%) and housing (43%) than last year. Inflation and rising interest rates continue to have a major impact on regional consumers, with 72% spending more this year attributing it in part to rising costs and inflation. The study, which surveyed 1,043 Greater Philadelphia and Delaware region consumers, measured spending and saving trends and the impact of economic conditions among adults ages 18-55. Rising costs and inflation topped the list of why consumers are spending more (72%), followed by paying for emergency expenses such as repairs or medical bills (27%), paying off more debt (23%) and rising interest rates on credit cards and loans (23%). Half of respondents have heard of but never used savings tools like certificates of deposit (50%), while 51% said the same about high-yield money market accounts, signaling an opportunity for consumers to use higher interest rates more to their advantage. Nearly four in 10 regional residents (38%) are spending more money now compared to last year, while only 21% in the region are saving more, according to a Money Trends study from WSFS Bank, the primary subsidiary of WSFS Financial Corporation (Nasdaq: WSFS). Inflation and rising interest rates continue to impact financial stability of many regional consumers, causing changes to financial behavior, while presenting opportunities for others Regional Consumers Continue to Adapt Spending and Saving Habits, WSFS Bank’s Annual Money Trends Study Finds
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